We present the results from XMM-Newton survey of the
Andromeda Galaxy (M31). We discovered more than a hundred of
new X-ray sources; some of them appeared to be bright X-ray
transients. The unprecedented sensitivity of XMM-Newton
allowed a detailed study of spectral properties and
variability of new and previously known X-ray sources with
luminosities above ~5 x 1036 ergs s-1. We
review the X-ray properties of various classes of objects
(X-ray transients, globular cluster sources, supernova
remnants (SNR) and supersoft sources) detected in our
survey. We present X-ray source luminosity distributions in
the bulge and disk regions of M31. The disk in general is
clearly lacking the brighter sources which dominate X-ray
emission from the bulge. This is the first convincing
evidence for a difference between bulge and disk X-ray
populations in M31. Our results are in good qualitative
agreement with the luminosity distributions for low- and
high-mass X-ray binaries in our Galaxy.

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tsp@nis.lanl.gov